Exchange rate volatility impacts August gas prices

Exchange rate volatility impacts August gas prices By Tam An Gas prices in August will pick up by VND41,000 per 45-kilogram cylinder – PHOTO: MINH TAM HCMC – Local cooking gas prices will increase by VND11,000 per 12-kilogram cylinder, starting August 1, with recent exchange rate fluctuations being considered the key driver of the price hike. Le Quang Tan, sales manager of Pacific Petro, which owns brands such as Pacific, City and Eff, said that of the VND11,000 increase, nearly VND3,000 was the result of exchange rate movements between the U.S. dollar and the Vietnamese dong. The remainder was a direct effect of the gas contract price increase in August by US$25 per ton month-on-month, reaching US$585.5 per ton. At the start of July, local gas suppliers saw their prices affected by the exchange rate movements but temporarily avoided raising their retail prices, providing temporary relief for consumers. As the situation continued, they finally had to raise gas prices in August since the weaker dong had left a major impact on prices, Tuan added. Many domestic gas distributors announced a price hike on Tuesday, July 31, saying local gas prices will be marked up by an average of VND917 per kilogram. In particular, a 12-kilogram cylinder will cost between VND355,000 and VND370,000, while the price of a 45-kilogram cylinder will rise by VND41,000 to VND1.36 million. A 50-kilogram gas container will see a price rise of VND46,000 to reach VND1.52 million. Regarding the greenback, the Commercial Bank for Foreign Trade… [Read full story]